On Black Friday, Trying to Understand How to Prevent Other Days from Becoming Black

(1) Dani Rodrik at Project Syndicate has written about the negative externalities of individual countries’ macroeconomic choices, pointing out that there needs to be equilibrium between net importers and exporters. Something bothers me about the implications of that premise for monetary and trade policy, but I’m not sure what. Brad Delong offers the remedy of hegemonic stability, but the journey (back) to such a concentration of power seems unwieldy and full of dead weight loss. Of course, I’m not sure Delong gets it. More to follow.